Vice President - Cloud, WSO2

Turning a Product Company Into a Cloud Company

Dmitry Sotnikov

5x in 4 years:SaaS in enterprise grew from

13% adoption in 2011 to 74% in 2015

Source: North Bridge Venture Partners &Gigaom Research

18% CAGR:The worldwide public cloud

services market is projected to grow 18% in 2017 to

total $246.8 billion

Source: Gartner

• New market segments• Faster feedback• Less shelfware• Recurring revenue

Vendor Benefits

Image: http://maxpixel.freegreatpicture.com/Seller-Money-Fair-Market-Street-Vendor-St

reet-1509010

Source: Tom Tungus

• Low cost of entry• Fast time to benefit• Pay as you go• Outsourced operations:

uptime, upgrades, security• Integration and scalability• Work anywhere• Social benefits

Customer Benefits

Image: https://www.flickr.com/photos/97481684@N08/14096568717

R&D• Waterfall vs cloud• No “works on my computer” • Testing impact• Upgrade impact• Troubleshooting, access,

logs https://www.flickr.com/photos/97481684@N08/14096568717

• Whole new team• Related to internal IS & PS• Ops vs Dev• Role of processes &

automation• 24x7• Post-mortems, shifts,

rotations

Operations

Image:https://commons.wikimedia.org/wiki/File:US_Navy_021114-N-0226M-001_On_duty_in_the_base_air_traffic_control_tower,_Air_Traffic_Controller_2nd_Class_Da

niel_Garza,_lower_left,_and_Air_Traffic_Controller_3rd_Class_Nicholas_Lennell,_lower_right,_discuss_aircraft_movement.jpg

• SLA• Credits• Uptime dashboard• Communications

Transparency

Image:https://commons.wikimedia.org/wiki/File:US_Navy_021114-N-0226M-001_On_duty_in_the_base_air_traffic_control_tower,_Air_Traffic_Controller_2nd_Class_Daniel_Garza,_lower_left,_and_Air_Traffic_Controller

_3rd_Class_Nicholas_Lennell,_lower_right,_discuss_aircraft_movement.jpg

Security• Compliance• Audits• Documented

processes• Encryption

Image:http://www.zdnet.com/article/industry-cloud-research-security-and-data-protection-is-still-the-most-important-feature-for/

Marketing

• Target audience• Acquisition costs• Channels• GDPR

Image:https://www.flickr.com/photos/askdavetaylor/22401799461

/in/photostream/

• Impact on current sales• Cannibalization• Customer confusion• Self-service

Sales

Image: https://pixabay.com/en/phone-communication-connection-618458/

Pricing• Freemium, trial,

commercial• Customer terms• Predictability• Tiers vs counters

Image: https://pixabay.com/en/olives-market-drupes-mediterranean-992240/

Pre-Sales/Services• Self-service or not• Nurturing• Geography• Tickets vs project

Image: https://pixabay.com/en/hand-in-hand-holding-hands-2065777/

Support• 24x7• Engineers or external• Integrated into

product

Image: https://commons.wikimedia.org/wiki/File:Customer_support_2.jpg

Finance• Bookings vs

– Revenue– MRR/ARR– ARPU– Churn rate– LTV– CAC

Image: https://www.pexels.com/photo/money-pink-coins-pig-9660/

Culture and Impact

• Leadership support• Clear objectives• Clear metrics• Coexistence with

core business

Image: http://www.geograph.org.uk/photo/559820

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